Booz Allen Hamilton awarded $116M task order for IT systems design services by GSA

Contract Overview

Contract Amount: $116,316,747 ($116.3M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: General Services Administration

Start Date: 2017-06-20

End Date: 2022-12-19

Contract Duration: 2,008 days

Daily Burn Rate: $57.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: IGF::OT::IGF THE PURPOSE OF THIS DOCUMENT IS TO MAKE THE TASK ORDER AWARD.

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $116.3 million to BOOZ ALLEN HAMILTON INC for work described as: IGF::OT::IGF THE PURPOSE OF THIS DOCUMENT IS TO MAKE THE TASK ORDER AWARD. Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Award Fee, which incentivizes performance but requires careful oversight. 3. Services include Computer Systems Design, a critical area for federal IT infrastructure. 4. The duration of the task order spans over five years, indicating a long-term need. 5. The award was made by the General Services Administration (GSA), a key procurement agency. 6. The contract value is substantial, reflecting significant IT support requirements.

Value Assessment

Rating: fair

The contract value of $116.3 million over five years for computer systems design services appears to be within a reasonable range for large-scale federal IT projects. Benchmarking against similar GSA contracts for IT services would provide a clearer picture of value for money. The Cost Plus Award Fee structure allows for flexibility but necessitates robust performance metrics to ensure fair pricing and prevent cost overruns. Without specific details on the award fee structure and performance outcomes, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The number of bidders is not specified, but this procurement method generally fosters price discovery and encourages competitive pricing. The GSA's use of full and open competition for such a significant IT services contract suggests a commitment to leveraging the broadest possible market.

Taxpayer Impact: Taxpayers benefit from the competitive nature of this award, as it is intended to drive down costs and ensure the government receives the best possible value for its investment in IT systems design.

Public Impact

Federal agencies requiring advanced computer systems design and integration services benefit from this contract. The services delivered are crucial for modernizing and maintaining federal IT infrastructure. The geographic impact is likely nationwide, supporting federal operations across various locations. The contract supports a workforce skilled in IT systems design, analysis, and implementation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee contracts can lead to higher costs if not managed tightly.
The long duration of the contract may present risks if technology or requirements change significantly.
Lack of specific performance metrics makes it difficult to assess true value for money.

Positive Signals

Awarded under full and open competition, suggesting competitive pricing.
Services are in a critical IT domain for government operations.
Contract awarded by GSA, a reputable federal procurement agency.

Sector Analysis

Computer Systems Design Services represent a significant segment of the federal IT market. This contract falls within the broader IT services sector, which consistently sees high levels of federal spending. The market is characterized by a mix of large prime contractors and specialized subcontractors. Federal spending in this area is driven by the need for modernization, cybersecurity, and efficient data management across agencies.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside for this contract. While this does not preclude small businesses from subcontracting, it means there was no direct requirement for them to be awarded the prime contract. The impact on the small business ecosystem would depend on whether Booz Allen Hamilton engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officers and program managers within the General Services Administration. The Cost Plus Award Fee structure necessitates detailed performance monitoring and evaluation to determine award fees. Transparency is generally maintained through contract award databases, though specific performance details and fee allocations may not always be publicly disclosed.

Related Government Programs

GSA IT Schedule 70
IT Professional Services
Computer Systems Design
Federal IT Modernization

Risk Flags

Cost Plus Award Fee structure requires diligent oversight.
Long contract duration may introduce risks related to technological obsolescence or changing requirements.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $116.3 million to BOOZ ALLEN HAMILTON INC. IGF::OT::IGF THE PURPOSE OF THIS DOCUMENT IS TO MAKE THE TASK ORDER AWARD.

Who is the contractor on this award?

The obligated recipient is BOOZ ALLEN HAMILTON INC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $116.3 million.

What is the period of performance?

Start: 2017-06-20. End: 2022-12-19.

What is the track record of Booz Allen Hamilton with GSA contracts of similar scope and value?

Booz Allen Hamilton is a major federal contractor with extensive experience across various agencies, including significant work with the General Services Administration. They frequently hold large IT services contracts, often involving complex system design, integration, and support. Their track record generally includes managing large-scale projects and navigating federal procurement regulations. Specific performance on past GSA contracts would require a deeper dive into contract performance reports and award data, but their overall presence suggests a capacity to handle contracts of this magnitude. Historical data indicates they are a consistent recipient of federal task orders and contracts, particularly in the IT and management consulting domains.

How does the $116.3 million value compare to other federal IT systems design contracts awarded in recent years?

The $116.3 million value for a five-year task order for computer systems design services is substantial but not unusual for large federal IT procurements. Major agencies like the Department of Defense, Health and Human Services, and others frequently award contracts in the tens to hundreds of millions of dollars for similar services. GSA itself manages numerous IT contracts that reach or exceed this value. The specific nature of the systems being designed (e.g., cloud migration, enterprise resource planning, cybersecurity infrastructure) would influence the benchmark. However, in the context of federal IT spending, this figure represents a significant, but not outlier, investment.

What are the primary risks associated with a Cost Plus Award Fee (CPAF) contract for IT systems design?

The primary risks with a CPAF contract for IT systems design revolve around cost control and performance definition. While CPAF incentivizes performance through award fees, there's a risk that the 'cost plus' component could lead to higher overall expenditures if the base costs are not well-managed or if the award fee criteria are not sufficiently stringent. Defining clear, measurable, and achievable performance objectives is critical; vague or subjective criteria can lead to disputes or inflated fee awards. For the government, the risk is paying more than necessary if performance is merely adequate rather than exceptional, or if costs escalate without commensurate value. Effective oversight is paramount to mitigate these risks.

How effective are GSA's procurement processes in ensuring value for money for IT services?

GSA's procurement processes, particularly through its IT Schedule programs and other vehicles, are designed to streamline and provide access to a wide range of IT services, aiming for value for money. The use of full and open competition, as seen in this award, is a key mechanism. However, the effectiveness can vary. Factors like the clarity of requirements, the competitiveness of the bidding pool, and the rigor of performance monitoring influence the final value. For complex services like systems design, ensuring that the awarded contract truly reflects the best technical solution at a fair price requires diligent management and oversight throughout the contract lifecycle. GSA's extensive experience and established processes generally support achieving value, but continuous evaluation is necessary.

What is the historical spending trend for Computer Systems Design Services by the General Services Administration?

The General Services Administration consistently spends significant amounts on Computer Systems Design Services, reflecting its role as a central procurement agency for the federal government. Historical data shows a steady demand for these services as agencies modernize their IT infrastructure, implement new software, and enhance system capabilities. Spending in this category often fluctuates based on major government-wide initiatives, agency-specific modernization projects, and the overall federal IT budget. GSA's IT Schedules are a primary mechanism through which this spending occurs, making it a key indicator of federal IT service acquisition trends.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Booz Allen Hamilton Holding Corporation

Address: 8283 GREENSBORO DR, MCLEAN, VA, 22102

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $155,591,406

Exercised Options: $148,507,591

Current Obligation: $116,316,747

Actual Outlays: $-222,283

Subaward Activity

Number of Subawards: 19

Total Subaward Amount: $3,938,479

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q09BGD0019

IDV Type: GWAC

Timeline